By Robert Dietz | Builder
The housing market is a relative bright spot for the economy. Rising mortgage applications, positive home building indicators, and an increasing focus on the importance of “home” are strong supports for the housing industry in the emerging recovery.
Why is housing positioned in this leading role? Relative to the Great Recession, housing enters this recession underbuilt rather than overbuilt. There is no wave of vacant homes to depress home prices, so the housing finance system is in relatively solid shape. Demographics are a tailwind for housing demand, with a large number of millennials looking to move from renting to homeowning as they age into their 30s. And, of course, housing is benefiting from low interest rates.